State regulators announced strong results from California’s cap-and-trade program on Wednesday. That’s a shift from other recent auctions, where most of the permits went unsold. But rules governing how the market for permits operates are helping to stabilize the system, said Chris Busch, research director at Energy Innovation. He called it “a triumph of policy design.”
Demand for California pollution permits rebounded in the first quarterly auction since an appeals court upheld the program. The California Air Resources Board reported that it sold out of permits to release greenhouse gases during 2017 or later. The demand exceeded the total supply for the first time since 2015, pushing prices above the minimum.
California’s latest carbon allowance auction could be up to 80% subscribed, a pair of analysts predicted, bucking the trend of weak bidder demand seen for much of the past year.
California Gov. Jerry Brown (D) is going to China early next month to drum up support for climate and clean energy policies as well as general trade cooperation. “We should expect to see more action this year,” said Chris Busch, research director with advisory firm Energy Innovation, who was in Beijing in March with Stanford University economist Larry Goulder. “[China’s] looking at this as an opportunity for international leadership…”
California governor Jerry Brown (D) says there is a “very good chance” state lawmakers will pass legislation next month to extend the state’s greenhouse gas cap-and-trade program. Now is the right time for Brown to make a strong push, according to Chris Busch, research director at the clean energy advisory firm Energy Innovation.
The carbon offset industry is reeling from a new proposal by California lawmakers that would shut them out of the state’s carbon market after 2020. “SB 775 has a more direct form of cost containment, a true price ceiling… I would argue it is a bigger matter of concern for international or out-of-state-offset developers.” Chris Busch, research director with advisory firm Energy Innovation, said in an email.
In his first 100 days, allies and adversaries saved Trump and the country from some of his most extreme, ill-considered campaign promises. As for the next 100 days, who will protect us? On the issues I care about most, I’m actually counting on California.
Top California lawmakers moved yesterday to overhaul the state’s cap-and-trade system to send revenue back to residents as a “climate dividend.” State Sen. Bob Wieckowski (D) introduced the legislation, which would launch a new carbon-trading program in 2021.
Bill that would ease retirement of coal plants passes Colorado House but faces tougher path in Senate
A bill that would make it easier to decommission aging coal plants in the state, while also assisting rural communities hurt by any closures, won approval Monday in the Colorado House of Representatives. But support for the measure split along party lines, increasing the odds that House Bill 17-1339 will find itself stranded in the Republican-controlled Senate.
Anxiety is building over whether California will be able to extend its cap-and-trade scheme beyond 2020, with observers warning that failure could severely dent efforts across North America to use markets to fight climate change.